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Members Hear About Status of Online Gaming

Lawmakers look at online gaming for additional revenue

Washington, DC
Tuesday, October 25, 2011

Lawmakers held a hearing to consider changing the federal ban on internet gambling. The House Energy & Commerce Subcommittee heard from stakeholders on the status of online gaming.

The hearing, chaired by Rep. Mary Bono (R-CA), considered what forms of online gaming should be allowed and how consumers may be impacted by potential changes in the law.

In 2006, concerned about the influence of organized crime in the gaming industry, Congress passed the Unlawful Internet Gambling Enforcement Act (UIGEA) which banned the use of credit and debit cards in online gaming transactions. Fantasy sports and legal intra-state and inter-tribal gaming were excluded from the guidelines that went into effect in 2009.

However, as tax revenues drop due to the ongoing recession, Rep. Joe Barton (R-TX) and Rep. Jim McDermott (D-WA) have introduced bills to change the federal gaming rules.

Today's witnesses included representatives from professional and Indian gaming associations as well as consumer groups opposed to the proposed changes.

Updated: Tuesday, October 25, 2011 at 1:40pm (ET)

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